The Hindu : Business : CLB refuses to stay allotment to IOC

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Saturday, Aug 06, 2005

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CLB refuses to stay allotment to IOC

Interim order in Haldia Petro case; final hearing on Sept. 27

NEW DELHI: In a setback to the Purnendu Chatterjee group, the Company Law Board (CLB) on Friday refused to stay the allotment of 7.5 per cent equity in Haldia Petrochemicals Ltd. to Indian Oil Corporation, though adding that this is "subject to final order'' on the petition.

"At this stage, I do not propose to put any fetters on the right of IOC on the shares other than stipulating that the impugned allotment shall be subject to the final order on the petition,'' CLB Chairman S Balasubramanian said in his order. The final hearing has been fixed for September 27. Mr. Subramanian, however, directed HPL to "defer allotment of any further shares'' till the disposal of the petition. "I further direct that the status quo of the shareholding of all the shareholders should be maintained as of today,'' he said.

The Purnendu Chatterjee group, which had 61 per cent stake in HPL prior to the coming of IOC into the picture, had challenged the allotment to the public sector company through the issue of fresh shares by the West Bengal Industrial Development Corporartion. In its petition, under Sec. 397 and 398 of the Companies Act, it had accused WBIDC of "breach of trust'' in the said allotment to IOC, which was completed on August 3, and registered with the Registrar of Companies.

PTI

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